According to Xiaojuan Shi, technology industry analyst from Morgan Stanley Securities, Osram announced that it will re-focus on LED solid-state lighting in order to achieve long-term goals of smart lighting. OSRAM's outsourcing order is expected to increase; Epistar, Everlight and Lextar are expected to share the business opportunity.
OSRAM spun off from Siemens of Germany, and issue Initial Public Offering (IPO) on the 8th at Frankfurt stock market. Xiaojuan Shi said that Osram holds several patents, it originally focused on the special lighting production of automotive, medical and other fields, and OSRAM is different from the most Asian LED plants towards TV backlight modules and consumer electronic products. Epistar, Everlight and Lextar just only have received small outsourcing order from Osram in the past, which has contributed little to revenues.
Xiaojuan Shi expressed that when Osram decided to refocus on the lighting market, in order to take into account the lower costs and economies of scale, Osram is bound to increase its outsourcing orders to Asian manufacturers in future, Taiwan-based LED plants will benefit.
According to the observation of Houhe Su, technology industry analyst from Credit Suisse, vertical integration is the trend of LED industry; LED plants to invest channels and understand end-customer demand are the key factors for the development of lighting industry. For this reason, Lextar is considered as the most promising enterprise with completed vertical integration and complete solutions from wafer to terminal lighting lamps.
In view of the perspective of the overall industry in the second half of this year, Heng Zhang, technology industry analyst from JP Morgan, pointed out that it is worth noting that the price of LED sapphire substrate rose by 10-15% in the second quarter, also it will rise about 10% or more in July, which means that the demand in LED industry is health, and the industry prospect for the third quarter is with no fear.
